Texas 2017 - 85th Regular

Texas House Bill HB3584 Compare Versions

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Old	New	Differences
1	1	85R9208 TJB-D
2	2	By: Neave H.B. No. 3584
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary limitation on the total amount of ad valorem
8	8	taxes that may be imposed by a taxing unit on a residence homestead
9	9	rendered uninhabitable or unusable as a result of a natural
10	10	disaster.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
13	13	adding Section 11.262 to read as follows:
14	14	Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS DAMAGED IN
15	15	DISASTER AREA. (a) In this section, "residence homestead" has the
16	16	meaning assigned by Section 11.13.
17	17	(b) This section applies only to a residence homestead that
18	18	is:
19	19	(1) located in an area declared by the governor to be a
20	20	disaster area following a natural disaster; and
21	21	(2) rendered uninhabitable or unusable as a result of
22	22	the disaster.
23	23	(c) A taxing unit may not increase during the period
24	24	prescribed by Subsection (d) the total annual amount of ad valorem
25	25	taxes the taxing unit imposes on a residence homestead above the
26	26	amount of the taxes the taxing unit imposed on the residence
27	27	homestead for the tax year in which the residence homestead was
28	28	rendered uninhabitable or unusable as a result of a natural
29	29	disaster if:
30	30	(1) the owner of the residence homestead submits an
31	31	application for the limitation to the chief appraiser of the
32	32	appraisal district in which the residence homestead is located not
33	33	later than the first anniversary of the date the residence
34	34	homestead is rendered uninhabitable or unusable; and
35	35	(2) the chief appraiser determines that the residence
36	36	homestead was rendered uninhabitable or unusable as a result of the
37	37	natural disaster.
38	38	(d) The limitation provided by this section:
39	39	(1) takes effect on January 1 of the first tax year
40	40	following the tax year in which the natural disaster that renders
41	41	the residence homestead uninhabitable or unusable occurs; and
42	42	(2) expires on January 1 of the earlier of:
43	43	(A) the first tax year following the tax year in
44	44	which the fifth anniversary of the natural disaster occurs; or
45	45	(B) the first tax year in which the property no
46	46	longer qualifies as the residence homestead of:
47	47	(i) the property owner claiming the
48	48	limitation under this section; or
49	49	(ii) the surviving spouse of the property
50	50	owner if the surviving spouse is entitled to the limitation under
51	51	this section.
52	52	(e) If a property owner who qualifies for a limitation under
53	53	this section dies, the surviving spouse of the owner is entitled to
54	54	the limitation for the residence homestead of the owner for the
55	55	period prescribed by Subsection (d) if the residence homestead:
56	56	(1) is the residence homestead of the surviving spouse
57	57	on the date that the owner dies; and
58	58	(2) remains the residence homestead of the surviving
59	59	spouse.
60	60	(f) This subsection applies only if a property owner submits
61	61	an application under this section to the chief appraiser after the
62	62	tax year in which the natural disaster occurs that renders the
63	63	owner's residence homestead uninhabitable or unusable and only if
64	64	the taxes imposed by a taxing unit on the residence homestead for
65	65	that tax year are greater than the taxes imposed by the taxing unit
66	66	for the preceding tax year. If the tax bill for the current tax year
67	67	has been mailed and the tax on the residence homestead has not been
68	68	paid, the assessor shall mail a corrected tax bill to the person in
69	69	whose name the residence homestead is listed on the tax roll or to
70	70	the person's authorized agent. If the tax on the residence
71	71	homestead for the current tax year has been paid, the tax collector
72	72	for the taxing unit shall refund to the person who paid the tax the
73	73	amount by which the payment exceeded the tax due.
74	74	(g) For each school district in an appraisal district, the
75	75	chief appraiser shall determine the portion of the appraised value
76	76	of residence homesteads of individuals on which school district
77	77	taxes are not imposed in a tax year because of the limitation on tax
78	78	increases under this section. That portion is calculated by
79	79	determining the taxable value that, if multiplied by the tax rate
80	80	adopted by the school district for the tax year, would produce an
81	81	amount equal to the amount of tax that would have been imposed by
82	82	the school district on those homesteads if the limitation on tax
83	83	increases under this section were not in effect, but that was not
84	84	imposed because of that limitation. The chief appraiser shall
85	85	determine that taxable value and certify it to the comptroller as
86	86	soon as practicable for each tax year.
87	87	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
88	88	to read as follows:
89	89	(b) If an appraisal district receives a written request for
90	90	the appraisal of real property and improvements of a cooperative
91	91	housing corporation according to the separate interests of the
92	92	corporation's stockholders, the chief appraiser shall separately
93	93	appraise the interests described by Subsection (d) if the
94	94	conditions required by Subsections (e) and (f) have been met.
95	95	Separate appraisal under this section is for the purposes of
96	96	administration of tax exemptions, determination of applicable
97	97	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
98	98	and apportionment by a cooperative housing corporation of property
99	99	taxes among its stockholders but is not the basis for determining
100	100	value on which a tax is imposed under this title. A stockholder
101	101	whose interest is separately appraised under this section may
102	102	protest and appeal the appraised value in the manner provided by
103	103	this title for protest and appeal of the appraised value of other
104	104	property.
105	105	(g) A tax bill or a separate statement accompanying the tax
106	106	bill to a cooperative housing corporation for which interests of
107	107	stockholders are separately appraised under this section must
108	108	state, in addition to the information required by Section 31.01,
109	109	the appraised value and taxable value of each interest separately
110	110	appraised. Each exemption claimed as provided by this title by a
111	111	person entitled to the exemption shall also be deducted from the
112	112	total appraised value of the property of the corporation. The total
113	113	tax imposed by a taxing unit [school district, county,
114	114	municipality, or junior college district] shall be reduced by any
115	115	amount that represents an increase in taxes attributable to
116	116	separately appraised interests of the real property and
117	117	improvements that are subject to the limitation of taxes prescribed
118	118	by Section 11.26, [or] 11.261, or 11.262. The corporation shall
119	119	apportion among its stockholders liability for reimbursing the
120	120	corporation for property taxes according to the relative taxable
121	121	values of their interests.
122	122	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
123	123	are amended to read as follows:
124	124	(6) "Current total value" means the total taxable
125	125	value of property listed on the appraisal roll for the current year,
126	126	including all appraisal roll supplements and corrections as of the
127	127	date of the calculation, less the taxable value of property
128	128	exempted for the current tax year for the first time under Section
129	129	11.31 or 11.315, except that:
130	130	(A) the current total value for a school district
131	131	excludes:
132	132	(i) the total value of homesteads that
133	133	qualify for a tax limitation as provided by Section 11.26; and
134	134	(ii) new property value of property that is
135	135	subject to an agreement entered into under Chapter 313; [and]
136	136	(B) the current total value for a county,
137	137	municipality, or junior college district excludes the total value
138	138	of homesteads that qualify for a tax limitation provided by Section
139	139	11.261 applicable to the taxing unit; and
140	140	(C) the current total value for a taxing unit
141	141	excludes the total value of homesteads that qualify for a tax
142	142	limitation provided by Section 11.262 applicable to the taxing
143	143	unit.
144	144	(13) "Last year's levy" means the total of:
145	145	(A) the amount of taxes that would be generated
146	146	by multiplying the total tax rate adopted by the governing body in
147	147	the preceding year by the total taxable value of property on the
148	148	appraisal roll for the preceding year, including:
149	149	(i) taxable value that was reduced in an
150	150	appeal under Chapter 42; and
151	151	(ii) all appraisal roll supplements and
152	152	corrections other than corrections made pursuant to Section
153	153	25.25(d), as of the date of the calculation, except that last year's
154	154	taxable value for a school district excludes the total value of
155	155	homesteads that qualified for a tax limitation as provided by
156	156	Section 11.26, [and] last year's taxable value for a county,
157	157	municipality, or junior college district excludes the total value
158	158	of homesteads that qualified for a tax limitation as provided by
159	159	Section 11.261 applicable to the taxing unit, and last year's
160	160	taxable value for a taxing unit excludes the total value of
161	161	homesteads that qualified for a tax limitation as provided by
162	162	Section 11.262 applicable to the taxing unit; and
163	163	(B) the amount of taxes refunded by the taxing
164	164	unit in the preceding year for tax years before that year.
165	165	(14) "Last year's total value" means the total taxable
166	166	value of property listed on the appraisal roll for the preceding
167	167	year, including all appraisal roll supplements and corrections,
168	168	other than corrections made pursuant to Section 25.25(d), as of the
169	169	date of the calculation, except that:
170	170	(A) last year's taxable value for a school
171	171	district excludes the total value of homesteads that qualified for
172	172	a tax limitation as provided by Section 11.26; [and]
173	173	(B) last year's taxable value for a county,
174	174	municipality, or junior college district excludes the total value
175	175	of homesteads that qualified for a tax limitation as provided by
176	176	Section 11.261 applicable to the taxing unit; and
177	177	(C) last year's taxable value for a taxing unit
178	178	excludes the total value of homesteads that qualified for a tax
179	179	limitation as provided by Section 11.262 applicable to the taxing
180	180	unit.
181	181	SECTION 4. Section 44.004(c), Education Code, is amended to
182	182	read as follows:
183	183	(c) The notice of public meeting to discuss and adopt the
184	184	budget and the proposed tax rate may not be smaller than one-quarter
185	185	page of a standard-size or a tabloid-size newspaper, and the
186	186	headline on the notice must be in 18-point or larger type. Subject
187	187	to Subsection (d), the notice must:
188	188	(1) contain a statement in the following form:
189	189	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
190	190	"The (name of school district) will hold a public meeting at
191	191	(time, date, year) in (name of room, building, physical location,
192	192	city, state). The purpose of this meeting is to discuss the school
193	193	district's budget that will determine the tax rate that will be
194	194	adopted. Public participation in the discussion is invited." The
195	195	statement of the purpose of the meeting must be in bold type. In
196	196	reduced type, the notice must state: "The tax rate that is
197	197	ultimately adopted at this meeting or at a separate meeting at a
198	198	later date may not exceed the proposed rate shown below unless the
199	199	district publishes a revised notice containing the same information
200	200	and comparisons set out below and holds another public meeting to
201	201	discuss the revised notice.";
202	202	(2) contain a section entitled "Comparison of Proposed
203	203	Budget with Last Year's Budget," which must show the difference,
204	204	expressed as a percent increase or decrease, as applicable, in the
205	205	amounts budgeted for the preceding fiscal year and the amount
206	206	budgeted for the fiscal year that begins in the current tax year for
207	207	each of the following:
208	208	(A) maintenance and operations;
209	209	(B) debt service; and
210	210	(C) total expenditures;
211	211	(3) contain a section entitled "Total Appraised Value
212	212	and Total Taxable Value," which must show the total appraised value
213	213	and the total taxable value of all property and the total appraised
214	214	value and the total taxable value of new property taxable by the
215	215	district in the preceding tax year and the current tax year as
216	216	calculated under Section 26.04, Tax Code;
217	217	(4) contain a statement of the total amount of the
218	218	outstanding and unpaid bonded indebtedness of the school district;
219	219	(5) contain a section entitled "Comparison of Proposed
220	220	Rates with Last Year's Rates," which must:
221	221	(A) show in rows the tax rates described by
222	222	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
223	223	property, for columns entitled "Maintenance & Operations,"
224	224	"Interest & Sinking Fund," and "Total," which is the sum of
225	225	"Maintenance & Operations" and "Interest & Sinking Fund":
226	226	(i) the school district's "Last Year's
227	227	Rate";
228	228	(ii) the "Rate to Maintain Same Level of
229	229	Maintenance & Operations Revenue & Pay Debt Service," which:
230	230	(a) in the case of "Maintenance &
231	231	Operations," is the tax rate that, when applied to the current
232	232	taxable value for the district, as certified by the chief appraiser
233	233	under Section 26.01, Tax Code, and as adjusted to reflect changes
234	234	made by the chief appraiser as of the time the notice is prepared,
235	235	would impose taxes in an amount that, when added to state funds to
236	236	be distributed to the district under Chapter 42, would provide the
237	237	same amount of maintenance and operations taxes and state funds
238	238	distributed under Chapter 42 per student in average daily
239	239	attendance for the applicable school year that was available to the
240	240	district in the preceding school year; and
241	241	(b) in the case of "Interest & Sinking
242	242	Fund," is the tax rate that, when applied to the current taxable
243	243	value for the district, as certified by the chief appraiser under
244	244	Section 26.01, Tax Code, and as adjusted to reflect changes made by
245	245	the chief appraiser as of the time the notice is prepared, and when
246	246	multiplied by the district's anticipated collection rate, would
247	247	impose taxes in an amount that, when added to state funds to be
248	248	distributed to the district under Chapter 46 and any excess taxes
249	249	collected to service the district's debt during the preceding tax
250	250	year but not used for that purpose during that year, would provide
251	251	the amount required to service the district's debt; and
252	252	(iii) the "Proposed Rate";
253	253	(B) contain fourth and fifth columns aligned with
254	254	the columns required by Paragraph (A) that show, for each row
255	255	required by Paragraph (A):
256	256	(i) the "Local Revenue per Student," which
257	257	is computed by multiplying the district's total taxable value of
258	258	property, as certified by the chief appraiser for the applicable
259	259	school year under Section 26.01, Tax Code, and as adjusted to
260	260	reflect changes made by the chief appraiser as of the time the
261	261	notice is prepared, by the total tax rate, and dividing the product
262	262	by the number of students in average daily attendance in the
263	263	district for the applicable school year; and
264	264	(ii) the "State Revenue per Student," which
265	265	is computed by determining the amount of state aid received or to be
266	266	received by the district under Chapters 42, 43, and 46 and dividing
267	267	that amount by the number of students in average daily attendance in
268	268	the district for the applicable school year; and
269	269	(C) contain an asterisk after each calculation
270	270	for "Interest & Sinking Fund" and a footnote to the section that, in
271	271	reduced type, states "The Interest & Sinking Fund tax revenue is
272	272	used to pay for bonded indebtedness on construction, equipment, or
273	273	both. The bonds, and the tax rate necessary to pay those bonds,
274	274	were approved by the voters of this district.";
275	275	(6) contain a section entitled "Comparison of Proposed
276	276	Levy with Last Year's Levy on Average Residence," which must:
277	277	(A) show in rows the information described by
278	278	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
279	279	entitled "Last Year" and "This Year":
280	280	(i) "Average Market Value of Residences,"
281	281	determined using the same group of residences for each year;
282	282	(ii) "Average Taxable Value of Residences,"
283	283	determined after taking into account the limitation on the
284	284	appraised value of residences under Section 23.23, Tax Code, and
285	285	after subtracting all homestead exemptions applicable in each year,
286	286	other than exemptions available only to disabled persons or persons
287	287	65 years of age or older or their surviving spouses, and using the
288	288	same group of residences for each year;
289	289	(iii) "Last Year's Rate Versus Proposed
290	290	Rate per $100 Value"; and
291	291	(iv) "Taxes Due on Average Residence,"
292	292	determined using the same group of residences for each year; and
293	293	(B) contain the following information:
294	294	"Increase (Decrease) in Taxes" expressed in dollars and cents,
295	295	which is computed by subtracting the "Taxes Due on Average
296	296	Residence" for the preceding tax year from the "Taxes Due on Average
297	297	Residence" for the current tax year;
298	298	(7) contain the following statement in bold print:
299	299	"Under state law, the dollar amount of school taxes imposed on the
300	300	residence of a person 65 years of age or older or of the surviving
301	301	spouse of such a person, if the surviving spouse was 55 years of age
302	302	or older when the person died, may not be increased above the amount
303	303	paid in the first year after the person turned 65, regardless of
304	304	changes in tax rate or property value.";
305	305	(8) contain the following statement in bold print:
306	306	"Notice of Rollback Rate: The highest tax rate the district can
307	307	adopt before requiring voter approval at an election is (the school
308	308	district rollback rate determined under Section 26.08, Tax Code).
309	309	This election will be automatically held if the district adopts a
310	310	rate in excess of the rollback rate of (the school district rollback
311	311	rate)."; [and]
312	312	(9) contain a section entitled "Fund Balances," which
313	313	must include the estimated amount of interest and sinking fund
314	314	balances and the estimated amount of maintenance and operation or
315	315	general fund balances remaining at the end of the current fiscal
316	316	year that are not encumbered with or by corresponding debt
317	317	obligation, less estimated funds necessary for the operation of the
318	318	district before the receipt of the first payment under Chapter 42 in
319	319	the succeeding school year; and
320	320	(10) contain the following statement in bold print:
321	321	"Under state law, the dollar amount of school taxes imposed on a
322	322	residence homestead rendered uninhabitable or unusable as a result
323	323	of a natural disaster may not for a temporary period be increased
324	324	above the amount of school taxes imposed on the property in the year
325	325	in which the natural disaster rendered the residence homestead
326	326	uninhabitable or unusable, regardless of changes in tax rate or
327	327	property value.".
328	328	SECTION 5. Section 403.302(d), Government Code, is amended
329	329	to read as follows:
330	330	(d) For the purposes of this section, "taxable value" means
331	331	the market value of all taxable property less:
332	332	(1) the total dollar amount of any residence homestead
333	333	exemptions lawfully granted under Section 11.13(b) or (c), Tax
334	334	Code, in the year that is the subject of the study for each school
335	335	district;
336	336	(2) one-half of the total dollar amount of any
337	337	residence homestead exemptions granted under Section 11.13(n), Tax
338	338	Code, in the year that is the subject of the study for each school
339	339	district;
340	340	(3) the total dollar amount of any exemptions granted
341	341	before May 31, 1993, within a reinvestment zone under agreements
342	342	authorized by Chapter 312, Tax Code;
343	343	(4) subject to Subsection (e), the total dollar amount
344	344	of any captured appraised value of property that:
345	345	(A) is within a reinvestment zone created on or
346	346	before May 31, 1999, or is proposed to be included within the
347	347	boundaries of a reinvestment zone as the boundaries of the zone and
348	348	the proposed portion of tax increment paid into the tax increment
349	349	fund by a school district are described in a written notification
350	350	provided by the municipality or the board of directors of the zone
351	351	to the governing bodies of the other taxing units in the manner
352	352	provided by former Section 311.003(e), Tax Code, before May 31,
353	353	1999, and within the boundaries of the zone as those boundaries
354	354	existed on September 1, 1999, including subsequent improvements to
355	355	the property regardless of when made;
356	356	(B) generates taxes paid into a tax increment
357	357	fund created under Chapter 311, Tax Code, under a reinvestment zone
358	358	financing plan approved under Section 311.011(d), Tax Code, on or
359	359	before September 1, 1999; and
360	360	(C) is eligible for tax increment financing under
361	361	Chapter 311, Tax Code;
362	362	(5) the total dollar amount of any captured appraised
363	363	value of property that:
364	364	(A) is within a reinvestment zone:
365	365	(i) created on or before December 31, 2008,
366	366	by a municipality with a population of less than 18,000; and
367	367	(ii) the project plan for which includes
368	368	the alteration, remodeling, repair, or reconstruction of a
369	369	structure that is included on the National Register of Historic
370	370	Places and requires that a portion of the tax increment of the zone
371	371	be used for the improvement or construction of related facilities
372	372	or for affordable housing;
373	373	(B) generates school district taxes that are paid
374	374	into a tax increment fund created under Chapter 311, Tax Code; and
375	375	(C) is eligible for tax increment financing under
376	376	Chapter 311, Tax Code;
377	377	(6) the total dollar amount of any exemptions granted
378	378	under Section 11.251 or 11.253, Tax Code;
379	379	(7) the difference between the comptroller's estimate
380	380	of the market value and the productivity value of land that
381	381	qualifies for appraisal on the basis of its productive capacity,
382	382	except that the productivity value estimated by the comptroller may
383	383	not exceed the fair market value of the land;
384	384	(8) the portion of the appraised value of residence
385	385	homesteads of individuals who receive a tax limitation under
386	386	Section 11.26 or 11.262, Tax Code, on which school district taxes
387	387	are not imposed in the year that is the subject of the study,
388	388	calculated as if the residence homesteads were appraised at the
389	389	full value required by law;
390	390	(9) a portion of the market value of property not
391	391	otherwise fully taxable by the district at market value because of:
392	392	(A) action required by statute or the
393	393	constitution of this state, other than Section 11.311, Tax Code,
394	394	that, if the tax rate adopted by the district is applied to it,
395	395	produces an amount equal to the difference between the tax that the
396	396	district would have imposed on the property if the property were
397	397	fully taxable at market value and the tax that the district is
398	398	actually authorized to impose on the property, if this subsection
399	399	does not otherwise require that portion to be deducted; or
400	400	(B) action taken by the district under Subchapter
401	401	B or C, Chapter 313, Tax Code, before the expiration of the
402	402	subchapter;
403	403	(10) the market value of all tangible personal
404	404	property, other than manufactured homes, owned by a family or
405	405	individual and not held or used for the production of income;
406	406	(11) the appraised value of property the collection of
407	407	delinquent taxes on which is deferred under Section 33.06, Tax
408	408	Code;
409	409	(12) the portion of the appraised value of property
410	410	the collection of delinquent taxes on which is deferred under
411	411	Section 33.065, Tax Code; and
412	412	(13) the amount by which the market value of a
413	413	residence homestead to which Section 23.23, Tax Code, applies
414	414	exceeds the appraised value of that property as calculated under
415	415	that section.
416	416	SECTION 6. The changes in law made by this Act apply only to
417	417	a residence homestead rendered uninhabitable or unusable by a
418	418	natural disaster that occurs on or after the effective date of this
419	419	Act.
420	420	SECTION 7. This Act takes effect January 1, 2018, but only
421	421	if the constitutional amendment proposed by the 85th Legislature,
422	422	Regular Session, 2017, authorizing the legislature to limit for a
423	423	temporary period the total amount of ad valorem taxes that may be
424	424	imposed by a political subdivision on a residence homestead
425	425	rendered uninhabitable or unusable as a result of a natural
426	426	disaster is approved by the voters. If that amendment is not
427	427	approved by the voters, this Act has no effect.